10 Signs That the Situation in Your Area Is Getting Worse
Over time, neighborhoods change and develop. People come and go, families are formed and businesses open for decades, even centuries. Areas of the city that were once considered elite and wealthy can become crime-ridden. Conversely, a neighborhood that was once inhabited by a rough crowd is now home to charming bungalows that people are bidding for.
Obviously, no one wants to move to a bad area . But what if the neighborhood deteriorates after you buy the home? After all, there’s no guarantee that everything will remain the same after you move—quite the contrary, because everyone around you is making decisions that have nothing (directly) to do with your happiness or the value of your property. However, if you pay attention, you may be able to spot some early signs that your neighborhood is in decline and either do something about it or consider selling your home before property values start (or continue to fall).
Housing changes
Some of the first signs of neighborhood decline are related to the houses around you:
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Increased rent . When your neighbors start putting up “For Rent” signs instead of selling their home, it’s usually a bad sign . A higher concentration of renters in an area lowers property values overall and indicates that your neighbors are having difficulty selling, which may indicate that word is spreading that your neighborhood is not an attractive choice.
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Long vacancies. Do you see properties remaining vacant for a long time? In areas where people want to live, houses and apartments sell quickly. Neighborhoods that are at the bottom of the list of desirable places have empty spaces. Vacancy rates can be a reliable indicator of the health of your area.
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No service. Look at the houses around you – are they in good condition? Are the yards trimmed, the doors painted, the renovations done? If not, it could be a sign that things are going badly, either due to falling property values (making maintenance costs unattractive) or because the people moving simply don’t care.
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Higher taxes. Are your property taxes rising every year, but nothing around you seems to be improving? This could indicate that local businesses are fleeing (see below) and your local government is trying to fill a revenue shortfall – a vicious cycle that doesn’t bode well for your area.
Quality of life
There are also daily signs that things are going wrong:
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More police. If you see a lot of police cars patrolling the area, you might think that’s a good thing. But police go where they’re needed, so a sudden increase in police presence could indicate that there are more petty crimes happening in your area, which could be the leading edge of a sharp decline.
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Less public transport. If your local public transport has seen a significant decline – there are fewer buses and stations and stops are left in poor condition – this may indicate that your area is no longer considered worth investing.
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School quality. Schools are an important motivating factor when families choose where to live. If the schools in your area are overcrowded, underfunded, or otherwise struggling, people with children or planning to have children will go elsewhere.
Business changes
Finally, take a look at businesses in your area. Whether you have an old-school high street with shops, a local shopping center, or just a bunch of small businesses scattered throughout, look for:
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Fewer businesses. If the charming shops, restaurants and merchants you once frequented have closed and no one has taken their place, it should be cause for concern.
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The chains go away. You might not pay much attention if a local chain restaurant moves to another area, but it’s not a good sign—it usually means the chain wants to maintain a presence in your area but doesn’t view your area as a good investment. more.
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Loss of premium grocery stores. There is an absolute hierarchy of grocery stores in this country: Trader Joe’s or Whole Foods are usually found in expensive, affluent areas , while less desirable areas may have some dollar stores serving as a source of groceries, or no stores at all. . If you notice that your local grocery store has changed hands and suddenly the products are worse and the prices are higher, you may have slipped down the grocery ladder—a clear sign that your area is going downhill, too.
Seeing these signs of neighborhood decline doesn’t mean you should panic and sell your home immediately, but it does mean you should start thinking about your next steps.